$VI=Vu+TC**D$

Question $13$

$10$ pts

Union Inc just issued bonds to pay for a new investment project. The current price of the bonds is $$1102\mathrm{.}25$ and they have $6$ years to maturity. If the annual market interest rate is $11\mathrm{.}2\%,$ what is the semi$-$annual coupon payment, the annual coupon rate $($APR$),$ and the effective annual rate $($EAR$)$ of the coupon payments?

Coupon payment $$149\mathrm{.}75$; coupon APR $6\mathrm{.}79\%$; coupon EAR $14\mathrm{.}05\%$

Coupon payment $$149\mathrm{.}75$; coupon APR $13\mathrm{.}59\%$; coupon EAR $11\mathrm{.}20\%$

Coupon payment $$67\mathrm{.}93$; coupon APR $11\mathrm{.}20\%$; coupon EAR $6\mathrm{.}79\%$

Coupon payment $$67\mathrm{.}93$; coupon APR $13\mathrm{.}59\%$; coupon EAR $14\mathrm{.}05\%$